FedEx (FDX) and Housing Boost Indexes
The indexes have regained their positive trends according the technical indicators on
ClearStation.com. Today saw good news in the form of housing starts coming in better than expected (330,000 v. 310,000 expected) and FedEx (FDX) giving a current quarter and current year estimate that was better than the provided just 6 weeks ago.
FedEx stock gained 5.6% today while United Parcel Service (UPS) also gained, up close to 2%.
The
Dow Jones Industrial closed up 100 making it three straight days of gains. Investors had been pessimistic heading into earnings season but quickly turned around as positive reports continued to be released. In fact, now there is belief that the recovery is progressing. FedEx is considered to be a measure of the overall economy as both businesses and consumers purchase shipping from the major distributor.
Quite a ride it has been with the Dow failing 10% for three months beginning in April and now rallying close to 8% in July. The index has regained a positive position for the whole year being up almost 1%. This is a major week for earnings reports so there could easily be four more days of market gains.
The housing number wasn’t great but it did show some stability in light of the federal tax credit not being renewed. Homebuilders saw some positive movement on the day along with the above expectations housing report. DR Horton (DHI) was up 3% while Lennar (LEN)gained 3.3% and Toll Brothers (TOL) rose 2.4% today.